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1j Issuance of Rev Bonds w Vict CITY OF CHANHASSEN o City Cmtrr Drillt, PO Box 147 1JaniHmm, Minnesota 55317 Phone 612.937.1900 Gmrral Fax 612.937.5739 'ngineering Fax 612.937.9152 .blic Safety Fax 612.934.2524 Xfb www.ci.chanhassm.mn.us MEMORANDUM TO: Mayor City Council Scott Botcher, City Manager ~ 1:þ , -; 1 'e City of Chanhassm.A f.1TJwinr community with ckan lakes. auolit¡ schoob. a charmin. downtown. thrioin. busin"'''. and beautiM Darks. A mat olact to lillt. work. and olaY. FROM: DATE: November 8, 2000 SUBJ: Resolution Calling for a Public Hearing On your Consent Agenda you will find an item asking you to adopt a resolution calling for a public hearing. While you can read through the resolution yourself, the cliff note version quite simply is this: The City of Victoria, working in conjunction with Mount Olivet Rolling Acres, Inc., is going to market on behalf of Mount Olivet Rolling Acres, Inc. to recapitalize Mount Olivet Rolling Acres, Inc. properties within II separate political jurisdictions outside of the City of Victoria. These jurisdictions are indicated as Exhibit D in your packet. In order for the City of Victoria to go to market on behalf of this organization and thereafter the organization use these proceeds outside of the City of Victoria, a joint powers agreement must be executed between the City of Victoria and each one of these political jurisdictions. The resolution this evening will call a public hearing seeking public comment prior to your consideration of the resolution actually authorizing the joint powers agreement between the City of Victoria and the City of Chanhassen. Quite simply the City of Chanhassen would be at no risk for doing this and this serves as an example of a good working relationship between not only political jurisdictions but political jurisdictions and a not for profit organization within our state. I recommend you adopt this resolution calling for the public hearing. Thank you. g:\user\scottb\mt. oJivet resolution.doc 11/0~/00 ~ON 15:08 FAX 6123402644 DORSEY & WHITNEY III 00 DORSEY & WHITNEY LLP 1ft'" 'YO..x .....T't.. Dl!>lV01\ PILLSBUIlY CStITEJI. SOI.11'R 220 SOUTH S!XTH SnU-"T MINNIiAl'OLlS. MI......OTA 55402-1498 T"LSPHOl'l2: (612) 340-2600 FAX: (612) 340-2868 RICHARD A. HELDE (612) 343-"12 F I<X (612) 340-2644 be'd~ric"'rd@døtaeylaw.çom ..LUHCS adAT PALLS ....s:sOULA .JW...... MlNPlB/l.!'OUS DÐMOINES Al'I'C1'IoaAGI. t.ONPON ,,.,.,,ço HONO )[0...0 N)CIi15TD. . S-,J,.T LAKE. (;,1'Y wASKINCTON. a.c. V,ANcouvu. COSTA M'8SA November 6, 2000 VIA FAX AND U.S. MAIL Mr. Scott Botcher City Manager City of Chanhassen City Hall 690 Coulter Drive Chanhassen, MN 55317 Re: Mount Olivet Rolling Acres, Inc. Dear Mr. Botcher: At the request of Mount Olivet Rolling Acres, Inc., I enclose a Resolution Calling for a Public Hearing on the proposed project. I understand that the resolution is to be considered at the November 13111 Council meeting. Please note that the hearing would be held on December 11111. Please note alSQ that notice of the hearing. must be published not fewer than 15 days in advance of the date of the nearing in a newspaper "of general circulation in the city." The forrn of legal notice is attached as Exhibit A to the Resolution. For our files we would appreciate receiving a copy of an affidavit of publication of the notice, once it is available ftom the newspaper. Mount Olivet Rolling Acres will, of course, be responsible for payment of related costs, including publication costs. We will take care of making the required filing of the Housing Program attached as Ex1ûbit C to the Resolution. Prior to the date of the hearing we will furnish you with a proposed forrn of approving resolution as well as the forrn of the related Joint Powers Agreement. 11/06/00 MON 15:08 FAX 8123402644 DORSEY & WHITNEY 141003 DORSEY & WHITNEY LLP Mr. Scott Botcher November 6, 2000 Page 2 On behalf of each of the parties to this transaction, thank you for your help with this project. Please do not hesitate to let us know if you have any questions on this or if you would like us to provide you with additional information. Very truly yours, i~J Q.lWh ~ Richard A. HeIde cc: Distribution List (w/enc.) RAH/jee _~06/00 HO!,! 15: 08 FAX 6123402644 DORSEY & WHITNEY 1aI004 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE 1, the undersigned, being the duly qualified and acting recording officer of the City of Chanhassen, Minnesota (the "City"), hereby certify that the attached resolution is a true copy of Resolution No. , entitled: "RESOLUTION RELATING TO A MUL TIFAMIL Y HOUSING DEVELOPMENT AND RELATED HOUSING PROGRAM ON BEHALF OF MOUNT OLIVET ROLLING ACRES, INC., THE ISSUANCE OF REVENUE BONDS THEREFOR UNDER THE MUNICIPAL HOUSING PROGRAMS ACT, AND CALLING FOR A PUBLIC HEARING THEREON" (the "Resolution''), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by tbe City Council of the City at a regular meeting on Monday, November 13, 2000, and thst the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that upon vote being tsken on the Resolution at said meeting, the following Council Members voted in favor thereof: the following voted against the same: the following abstained from voting thereon: and the following were absent: WITNESS my hand officially this _ day of ,2000. City Clerk 11/06/00 MON 15 :.º8 FAX 6123402644 DORSEY & WHITNEY ~oos Resolution No. RESOLUTION RELATING TO A MUL TlF AMIL Y HOUSING DEVELOPMENT AND RELATED HOUSING PROGRAM ON BEHALF OF MOUNT OLIVET ROLLING ACRES, INC., THE ISSUANCE OF REVENUE BONDS THEREFOR UNDER THE MUNICIPAL ROUSING PROGRAMS ACT, AND CALLING FOR A PUBLIC HEARING THEREON BE IT RESOLVED by the City Council of the City of Chanhassen, Minnesota (the "City''), as follows: Sectioll 1. Recitals. 1.1. The City (sometimes referred to as a "Participating Jurisdiction") is authorized by Minnesota Statutes, Chapter 462C. as amended (the "Housing Programs Act"), to assist in the fInancing of multifamily housing developments within its boundaries, and, specifically, to authorize the issuance of revenue bonds, which revenue bonds shall be payable solely from revenues of the development or other security pledged therefor. The City is also authorized by the Housing Programs Act and by Minnesota Statutes, Section 471.59 (the "Joint Powers Act"), to enter into a joint powers agreement and, pursuant thereto, to authorize another city (referred to as the "Issue(') to issue revenue bonds of the Issuer to finance multifamily housing de7Velopments that are located in the City, in such other city, and in other cities or political jurisdictions. 1.2. Mount Olivet Rolling Acres, Inc., a Minnesota nonprofit corporation and an organization described in Section 501 (c)(3) of the Internal Revenue Code (the "Borrower"), has requested that the City conduct a public hearing on a proposal by the Borrower that the Issuer, or olle of the other Participating Jurisdictiolls to be identified in a joint powers agreement or identified in Exhibit D hereto (all collectively retèrred to as the "Participating Jurisdictions"), acting pursuant to such joint powers agreement (the "Joint Powers Agreemellt") between the Issuer and such other Participating Jurisdictions (which Participating Jurisdictions shall in any evellt include the City), issue revenue bonds in a principal amount of up to $2,250,000 (the "Bonds"), pursuant to the Joint Powers Act and the Housing Programs Act (together referred to as the "Acts"). 1.3. Under the proposal by the Borrower, the Párticipating Jurisdictions will enter into the Joint Powers Agreement, pursuant to which the Issuer, or one of the other Participating Jurisdictions selected by the Participating Jurisdictions, will issue the BOllds, a portion of the proceeds of which (the "Victoria Portion") would be applied by the Borrower to pay costs of the Victoria Project described below. Proceeds of the Bonds not constituting a part of the Victoria Portion would be applied to finance or refinance costs of acquiring, constructing, improvillg, rehabilitatillg, equipping and furnishing facilities of the Borrower located in one or more of the other Participating Jurisdictions, including a facility of the Borrower located in the City, as more particularly described below ( all collectively referred to as the "Development"). ~-2~~)!ON 15:09 FAX 8123402844 DORSEY & WHITNEY III 008 1.4. The Victoria Project consists of the acquisition and construction of improvements, including equipment, furnishings and site improvements, to the existing facilities of the Bonower for the developmentally disabled located at 7200 Rolling Acres Road in the City of Victoria. The Development consists generally of the Victoria Project, together with the acquisition, construCtion, rehabilitation, improvement, equipping, furnishing and refinancing of various existing and new facilities of the Borrower, all as further described in Exhibit B. The portion of the Development located in the City consists of the refinancing of existing taxable mortgage indebtedness with respect to, and the rehabilitation of, an existing facility of the Bonower for the developmentally disabled, at the specific address set forth in the foÌIl1 of legal notice attached hereto. 1.5. The Development constitutes one or more "multifaIIlily housing developments" eligible for financing by the Issuer under the Housing Programs Act. There is attached as Exhibit C hereto a description of a related Housing Program therefor (the "Housing Program"), developed pursuant to the Housing Programs Act. 1.6. The Borrower has requested the Issuer to issue the Bonds, and has requested in connection therewith that the City approve the attached Housing Program, the execution and delivery of the Joint Powers Agreement, and the issuance of the Bonds by the .Issuer, fòr purposes of Section 141(f) of the Internal Revenlle Code of 1986, as amended Section 2. Public Hearing 2.1. The Housing Programs Act requires that the City hold a public hearing on the Housing Program and the Development following not fewer than fifteen days' published notice thereof. 2.2. Section 147(f) of the Interoal Revenue Code of 1986; as amended, and regulations promulgated thereunder, requires that. as a condition to the exemption from federal income taxation of interest on the Bonds, this Council conduct a public hearing on the proposal to finance the Development through the issuance of the Bonds by the Issuer. 2.3. A public hearing on the proposal that the City adopt the Housing Program and authorize the issuance of the Bonds by the Issuer is hereby called and shall. be held on Monday, December 11, 2000, at _ o'clock __M., at the City Hall. A legal notice of the public hearing, substantially in the fonn of Exhibit A hereto, shall be published in a newspaper circulating generally in the City, as required by law, not fewer than 15 days in advance of the hearing. -2- 11/06/00 MON 15:09 FAX 8123402644 ----. Attest: Pa.ssed this _ day of City Clerk ,2000. DORSEY & WHITNEY Mayor -3- \gJ007 _ 11/06~IIION 15: 09 FAX 6123402644 DORSEY &.WHITNEY III 008 EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSED HOUSING DEVELOPMENT AND PROGRAM AND THE ISSUANCE OF REVENUE BONDS UNDER THE MUNICIPAL HOUSING PROGRAMS ACT, MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the City Council of the City of Chanhassen, Minnesota (the "City") on a proposal by Mount Olivet Rolling Acres, Inc., a Minnesota nonprofit corporation (the "Borrower") that the City òfVictoria (the "Issuer"), acting pursuant to ajoint powers agreement (the "Joint Powers Agreement") issue revenue bonds (the "Bonds'') to finance and refinance the costs of acquisition, construétion, equipping, furnishing and rehabilitation of the various residential facilities for the developmentally disabled described below (collectively referred to as the "Development"), including the Victoria Project described below, and the Chaska Project described below, all pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), including related administrative costs, reserves, capitalized interest, and cost of issuance. The Bonds would be issued pursuant to a Housing Program developed in accordance with the Act, a copy of which is on file at the City Hall. The hearing will be held at the City Hall, located at 690 Coulter Drive in the City, on Monday, December 11, 2000, at _ o'clock _.M. The Victoria Project consists of the acquisition and construction of improvements, including equipment, furnishings and site improvements, to the existing facilities of the Borrower for the developmentally disabled located at 7200 Rolling Acres Road, Victoria, Minnesota (referred to as the "Victoria Project''). In addition to the Victoria Project, the Development consists generally of the following: (1) the refinancing, rehabilitation, equipping and furnishing of various existing facilities of the Borrower for the developmentally disabled located in other cities or jurisdictions outside of the City (at specific addresses set forth below); and (2) the acquisition, construction, rehabilitation, improvement, equipping and furnishing of ncw and/or existing facilities of the Borrower for the developmentally disabled located in those cities or jurisdictions and in Aitkin County, Minnesota (at the specific address set forth below). The Chanhassen Project consists of the refinancing of existing taxable mortgage indebtedÐ.ess with respect to, and the rehabilitation of, an existing residential facility of the Borrower for the developmentally disabled, at the specific address in the City described below. The facilities included in the Development are situated at the following locations: 7200 Rolling Acres Road, Victoria, Minnesota (serving 44 persons); 129 Mackenthun Lane; Norwood- Young America, Minnesota (serving six persons); 1757 Highwood Drive, Chaska, Minnesota (serving four persons); 320 Fifth Street Northeast, Mayer, MiIUlesota (serving four persons); 241 West Third Street, Waconia, Minnesota (serving four persons); 3921 Leslie Curve, Chanhassen, Minnesota (serving four persons); 112209 James Court, Jonathan, Minnesota (serving four persons); 25925 Birch Bluff, Shorewood, Minnesota (serving four persons); 6843 and 6845 A-I 11/06/00 .MON 15:10 FAX 8123402644 DORSEY & WHITNEY III 009 Lyndale Avenue South, Richfield, Minnesota (serving six persons); 7829 Tessman Drive, Brooklyn Park, Minnesota (serving four persons); 8217 29!h Avenue North, New Hope, Minnesota (serving four persons); 2413 Plymouth Road, Minnetonka, Minnesota (servíng four persons); and Route T, Jevne Township, McGregor, Minnesota (serving a minimum of20 persons). Under the proposal, the City will enter into the Joint Powers Agreement, pursuant to which the Issuer (or another of the Participating Jurisdictions identified in the Joint Powers Agreement, as detennined by the Participating JUrisdictions) will issue its revenue bonds in a principal amount of approximately $2,250,000 (the "Bonds") to provide funds for the costs of the Development, and for related costs, including the funding of required reserves, administrative costs, capitalized interest and issuance costs. The Development involves assistance for housing. Accordingly, the issuance of the Bonds is not a business subsidy, within the meaning ofMÎ1ll1esota Statutes, Sections 1 16J.993 to 116J.995, as amended. At said time and place the City Council shall give all parties who appear or submit written comments an opportunity to express their views with respect to the proposal. Dated: ,2000. CITY OF CHANHASSEN, MINNESOTA By sf City Clerk A-2 11/06/00 M~N 15:10 FAX.6123402644 DORSEY & WHITNEY IaJ010 EXIDBIT B (Description of Development) The Development consists of the acquisition and construction of improvements~ including equipment, furnishings and site ilnprovements, to the existing facilities of the Borrower for the developmentally disabled located at 7200 Rolling Acres Road in the City of Victoria (referred to generally as the "Victoria Project''), together with the following: (1) the refinancing, rehabilitation, equipping and furnishing of various existing facilities of the Borrower (sometimes referred to as the "Refinancing and Rehabilitation Projects"), located in other cities or jurisdictions (at specific addresses set forth below); and (2) the acquisition, construction, improvement, rehabilitation, equipping and furnishing of new and/or existing facilities: for the developmentally disabled in such cities or jurisdictions and in Aitkin County, Minnesota (and/or in other locations, as necessary and suitable, to the extent permitted by law). . The Refinancing and Rehabilitation Projects included in the Development will each consist of the rehabilitation of one or more existing buildings and sites located in other cities or jurisdictions outside ofthe City, and the discharge of any lien or other interest in those buildings and sites. The cost of rehabilitation of each of these existing buildings will be equal to at least $1,000 per dwelling unit, all as provided in and required by the Housing Programs Act. The Development will also include the acquisition, construètion, improvement, rehabilitation, equipping and furnishing offacilities for the developmentally disabled in those same cities or jurisdictions and in the County of Aitkin. The facilities included in the Development are situated at the following locations: 7200 Rolling Acres Road, Victoria, Minnesota (serving 44 persons); 129 Mackenthun Lane, Notwood- Y01U1g America, Minnesota (serving 6 persons); 1757 Highwood Drive, Chaska, Minnesota (serving 4 persons); 320 East Fifth Street Northeast, Mayer, Minnesota (serving 4 persons); 241 West Third Street, Waconia, Minnesota (serving 4 persons); 3921 Leslie Curve, Chanhassen, Minnesota (serving 4 persons); 112209 James Court, Jonathan, Minnesota (serving 4 persons); 25925 Birch Bluff, Shorewood, Minnesota (serving 4 persons); 6843 and 6845 Lyndale Avenue South, Richfield, Minnesota (serving 6 persons); 7829 Tessman Drive, Brooklyn Park, Minnesota (serving 4 persons); 8217 29th Avenue South, New Hope, Minnesota (serving 4 persons); 2413 Plymouth Road, Minnetonka, Minnesota (serving 4 persons); and Route T, Jevne Township, McGregor, Minnesota (serving a minimum of 20 persons). B-1 · 11/06!~) ON 15: 10 .FAX ~123402844 DORSEY & WHITNEY III 011 EXHIBIT C (Form of Housing Program) HOUSING PROGRAM FOR MULTIFAMILY HOUSING DEVELOPMENT UNDER MINNESOTA STATUTES, CHAPTER 462<: MOUNT OLIVET ROLLING ACRES, INC. This Housing Program describes a housing development initiative to be authorized by the City of Chanhassen, Minnesota (the "City"), on behalf of itself and the other political jurisdictions referred to below (and/or any county housing and redevelopment authoritY authorized to act on behalf of one or more of such political jurisdictions), involving the development and financing of multiple residential facilities for the developmentally disabled, including: (l) the acquisition and construction of improvements, including equipment; furoishings and site improvements, to the existing facilities for the developmentally disabled located at 7200 Rolling Acres Road in the City of Victoria (generally referred to as the "Victoria Project"); (2) the refinancing, rehabilitation, equipping and furnishing of various existing facilities for the developmentally disabled located in other cities or jurisdictions (further described below), all pursuant to a Joint Powers Agreement (the "Joint Powers Agreement") to be entered into by the City in connection therewith (generally referred to as the "RefuUmcing and Rehabilitation Projects"); and (3) the acquisition, construction, rehabilitation, improvement, equipping and furnishing of new and/or existing facilities for the developmentally disabled in such cities or jurisdictions and in Aitkin County, Minnesota (and/or in other locations, as necessary and suitable, to the extent permitted by law), all pursuant to the Joint Powers Agreement (referred to, together with the Victoria Project and the Refinancing and Rehabilitation Projects described above, collectively as the "Development"). The specific portion oithe Development located in the City consists of the refmancing of existing taxable mortgage indebtedness with respect to, and the rehabilitation of, an existing residential facility of the Borrower for the developmentally disabled, located at the specific address set forth below. The Development is being undertaken pursuant to the authority of Minnesota Statutes, Chapter 462C, as amended (the "Act"). Each of the facilities in the Development is and is to be owned and operated by Mount Olivet Rolling Acres, Inc., a Minnesota nonprofit corporation (sometimes referred to as the "Borrower"). The Refinancing and Rehabilitation Projects included in the Development will each consist of the rehabilitation of one or more existing buildings and sites and the discharge of any lien or other interest in the buildings and sites. The cost of rehabilitation of each of these existing buildings will be equal to at least $1,000 per dwelling unit, all as provided in and required by the Act. These existing facilities are located in the following cities (and at the specific addresses set forth below): Chaska, Mayer, Waconia, Chanhassen, Norwood-Young C-l 11/06/00 MON 15:11 FAX 6123402644 -_. "-- DORSEY & WHITNEY III 012 America, Shorewood, Richfield, Brooklyn Park, New Hope, and Shakopee. The De.velopment will also include the acquisition, constrUction, improvement, rehabilitation, equipping and furnishing of facilities for the developmentally disabled located in those cities and in the County of Aitkin (at the specific address set forth below). The facilities included in the Development are situated at the following 10catiQns: 7200 Rolling Acres Road, Victoria, Minnesota (serving 44 persons); 129 Mackenthun Lane; Norwood- Young America, Minnesota (serving six persons); 1757 Highwood Drive, Chaska,Minnesota (serving four persons); 320 Fifth Street Northeast, Mayer, Minnesota (serving four persons); 241 West Third Street, Waconia, Minnesota (serving four persons); 3921 Leslie Curve, Chanhassen, Minnesota (serving four persons); 112209 James Court, Jonathan, Minnesota (serving four persons); 25925 Birch Bluff, Shorewood, Minnesota (serving four persons); 6843 and 6845 Lyndale Avenue South, Richfield, Minnesota (serving six persons); 7829 Tessman Drive, Brooklyn Park, Minnesota (serving four persons); 8217 29th Avenue North, New Hope, Minnesota (serving four persons); 2413 Plymouth Road, Minnetonka, Minnesota (serving four persons); and Route T, Jevne Township, McGregor, Minnesota (serving a minÌIÌlum of 20 persons). The Development will be operated as a multifamily housing development, within the meaning of the Act. The use of the Development will be carried out in accoEdance with applicable land use and development restrictions, and the Development will be subject to applicable state and local building codes. The Borrower will be required to operate the Development in accordance with state and local 'anti-discrimination laws and ordinances. The Development will be available for rental primarily to handicapped persons, within the meaning of Section 462C.05, Subd. 4, of the Act, and, accordingly, no limitations on the gross income of occupants will be required by the Act. The Development is needed geneJ:ally in order to better serve developmentally disabled and handicapped persons and is needed specifically to lower the costs of operating faeilities used to house such persons, to improve existing facilities used for housing such persons, and to add to the existing stock of such housing. Meeting these needs is consistent with and authorized by the City's Housing Plan, Comprehensive Plan and overall program for housing, all as authorized and contemplated thereby. To finance the Development, the City of Victoria, or one of the other Participating Jurisdictions, as detennined by the Participating Jurisdictions (referred to in the alternative as the "Issuer"), will issue revenue bonds in a principal amount of approximately $2,250,000. The Borrower will be required, pursuant to a revenue agreement, such as a loan agreement, to make payments sufficient to pay when due the principal of, premium, if any, and interest on such revenue bonds when due. The revenue bonds may be structured so as to take advantage of whatever means are available or necessary and are permitted by law to enhance the security for and marketability of the revenue bonds. Such security is expected to consist primarily of mortgage liens granted against each of the facilities included in the Development. The revenue bonds will not constitute a general obligation or indebtedness of the Issuer, within the meaning of any constitutional or statutory provision, nor will the full faith and credit of the Issuer, the State C-2 ~06/00 MON 15: 11 FAX 6123402644 DORSEY & WHITNEY 141013 of Minnesota or any other political subdivision of the State of Minnesota, including the City, be pledged to the payment thereof. The costs of the Development and the program of financing the Development will be paid by the Borrower or fi'om the proceeds of the revenue bonds to be issued, to the extent that such proceeds are lawfully available therefor. C-3 11/06/00 MON 15:11 FAX 6123402644 DORSEY & WHITNEY III 014 EXHIBIT D (Identification of Participating Jurisdictions) In addition to the City of Victoria, the Participating Jurisdictions shall consist of the following cities or other political jurisdictions: . 1. City of Cbaska 2. City of Mayer 3. CityofWaconia 4. City of Chanhassen 5. City of Norwood-Young America 6. City of Minnetonka 7. City of Shorewood 8. City of Richfield 9. City of Brooklyn PlU'k 10. City of New Hope 11. Housing and Redevelopment Authority of the County of Aitkin D-1